Mortgage Rates Increase Explained In New Loan Love Video

November 12, 2013

A new video from LoanLove.com discusses what is causing today’s rates to increase.

San Diego, CA (PRWEB) November 12, 2013

LoanLove.com is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. A recently posted video from the loan advice website continues to help explain how home loans work by looking at mortgage interest rates and specifically what is causing the recent mortgage rates increase.

The hostess of the video explains: “First, they were up, then they were down, and now they're headed back up again. No, we're not talking about this season's hemlines. We're talking about mortgage rates. And unless you've been hiding under a rock for the past couple of weeks or you have absolutely zero interest in financial news, you've undoubtedly heard about how mortgage rates have been spiking upward. Today's news is no different. Given that the recent historic low interest rates were being propped up by a federal government program, an adjustment in those rates — that is, getting them back to normal levels — was inevitable. And chances are pretty good that rates are going to go up even more before they finally find their magic "sticking point."

This recent increase in rates can be seen in the November 8th report from Mortgage News Daily, which can be found here. Many potential home loan borrowers will likely look at the current rates compared to the rates of earlier this year and feel like they have missed the boat and will feel discouraged from applying for a home loan with today’s noticeably higher rates. However, this information is certainly not meant to scare or dissuade anyone from getting a home loan. On the contrary, the video continues, saying: “The main thing to remember is to stay calm and shop smart: there are more mortgage options than ever before, and that means you still have time to get a mortgage that saves you lots of money. So while the increase in rates isn't exactly good news — especially if you're considering buying a home or refinancing a mortgage in the near future — it shouldn't cause you to freak out, either.”

The Loan Love article, which the video links to in the end, is even more encouraging for those who have been thinking of purchasing or refinancing a home, saying: “Today’s interest rates are nothing new- in reality, rates are still near rock bottom if you took an average of the past 15 years. If you haven’t guessed by now, they’re definitely going up. And going up fast. Act quickly if you’re looking to acquire or sell real estate; time is against you (at least in the short run).”

To learn more about the recent interest rate spikes, and to find more tips on finding the best home loans, please click here to view the full video.